OECD investment policy tools

The PFI is a tool providing a checklist of issues for consideration by any government interested in creating an attractive investment environment and in enhancing the development benefits of investment to society. The policy areas covered are widely recognised, including in the Monterrey Consensus, as underpinning a healthy environment for all investors, from small- and medium-sized firms to multinational enterprises.

The PFIA, a sectoral adaptation of the PFI, is a flexible tool which helps governments evaluate their investment policies in the ten areas essential to creating an attractive environment for investors and in enhancing the development benefits of agricultural investment.

Weak governance zones are defined as countries where governments are unable or unwilling to assume their responsibilities -- about 15 per cent of the world's people live in such countries. Multinational enterprises recognise that they represent some of the most difficult investment environments. This Risk Awareness Tool helps them to identify some of the special risks that arise in these environments, those that are linked to government failures. It covers such topics as obeying the law and observing international instruments; political activities; knowing clients and business partners; and speaking out about wrongdoing.

These OECD Principles aim to help governments work with private sector partners to finance and bring to fruition infrastructure projects in areas of vital economic importance such as transport, water and power supply and telecommunications. They offer governments a checklist of policy issues to consider in ensuring that citizens get the services they need at a fair cost and with viable returns to private sector partners.

Transparency remains one of the top concerns of investors worldwide. This Framework for Investment Policy Transparency aims to assist host OECD and non-OECD governments to properly address this concern. The Framework contains fifteen user-friendly questions for conducting self-evaluation and sharing experiences among public officials.

These principles and checklist aim to provide policy makers with a tool against which to assess the usefulness and relevance of FDI incentive policies. Incentives for attracting FDI provides an overview of the supporting material used to prepare this report.

The Due Diligence Guidance provides management recommendations for global responsible supply chains of minerals to help companies to respect human rights and avoid contributing to conflict through their mineral or metal purchasing decisions and practices. It is for use by any company potentially sourcing minerals or metals from conflict-affected and high-risk areas.

Taken together, this OECD guidance and the Santiago Principles for SWFs provide the international community with a robust framework for promoting mutual trust and confidence and reaping the full benefits of SWFs for home and host countries.